AB 1157 (Kalra) ● Fact Sheet ● March 27, 2025
Assembly Bill 1157
The Affordable Rent Act
Assembly Member Ash Kalra
SUMMARY
Assembly Bill (AB) 1157, the Affordable Rent Act,
will build on the Tenant Protection Act by lowering
the amount rent can increase annually to Consumer
Price Index (CPI) +2% or a maximum cap of 5%,
expanding the “just cause” and “rent cap” to all
rental homes (not including new development
within the last 15 years), and removing the Act’s
sunset date.
Over the years, the cost of rent has continued to
increase, making it unaffordable for many working
families. California is home to roughly 17 million
renters, which makes up 44% of the state’s
population and makes it the second-largest state for
renters in the country. Too many Californians are
rent-burdened, placing them at risk of housing
instability and homelessness. AB 1157 will help
stabilize rents for Californians and extend tenant
protections to all tenants.
BACKGROUND
California is amidst a growing housing crisis with
many Californians struggling with the high cost of
housing. A California Budget and Policy Center
report stated that even before the pandemic, over
half of renters were cost-burdened (paying more
than 30% of their total income in rent), and the
other half of renter households were severely cost-
burdened (paying more than 50% of their income in
rent). Cost-burdened families are at greater risk of
becoming homeless or facing housing instability.
For many of these same renters, the COVID-19
pandemic, job losses, and natural disasters hit them
the hardest. Oftentimes, they have been unable to
recover from the economic loss and have been
forced to make adjustments to support their
families, such as taking low-wage jobs, which only
exacerbates their inability to afford rent. This puts
further financial strain on paying utilities, health
care, groceries, and other necessities.
In 2019, California passed the Tenant Protection
Act (TPA) which delivered critical protections for
some renters and established the state’s first-ever
“rent cap” and “just cause” for evictions. Despite
these measures, the current “cap” remains
unsustainable for many renters. For example, the
2024 CPI has increased throughout the state,
placing the allowable rent increases between 8.6%
(San Diego County) to 9.3% (Riverside and San
Bernardino County). These increases can average
about $100 to $200 or more per month for
California renters.
Additionally, while the TPA created rent gouging
and eviction protections to existing tenants across
the state, landlords are still able to increase to up to 10% per year. Parts of California that were once
considered affordable for families to rent have seen
some of the biggest rent increases. According to
data sourced from the Zillow Rent Index observing
2020 to 2023, rent has increased nearly 40% in
many cities since the pandemic. For instance, in
Santa Maria, rent increased by 40.9%, in
Bakersfield by 39.4%, in Fresno by 38%, and in
Riverside by 37.5%.
Furthermore, although California has established
housing programs to help unhoused individual exit
homelessness, others continue to be pushed into
homelessness each year by rising housing costs in a
constant revolving cycle. While thirty-five
jurisdictions in California have established stronger
rent controls than TPA, these tenant protections
need to be extended to all Californians. Stabilizing
the rental market will help keep tenants in their
homes and take a preventative approach to address
the growing homelessness issue in California.
SOLUTION
AB 1157, the Affordable Rent Act, will protect
tenants across the state by lowering the rent cap,
expanding the Tenant Protection Act to all renters
in California, and removing the sunset to help
stabilize skyrocketing rent increases for all
California renters.
AB 1157 (Kalra) ● Fact Sheet ● March 27, 2025
Specifically, the bill will lower the rent cap to the
CPI +2% or a 5% maximum, whichever is lower.
By adjusting the rent cap, tenants will be able to
afford the rent and be able to place food on the
table. In addition, expanding the Tenant
Protection Act of 2019 to all rental housing will
ensure that all renters in California are afforded
the same tenant protections. Lastly, AB 1157 will
remove the sunset date to ensure tenants of
California will continue to have rent caps and just
cause protections.
As the cost of living continues to rise, renters
should not have to choose between keeping a roof
over their heads and feeding their families. AB
1157 will create meaningful action to help address
the housing affordability crisis and reduce the
chance of families being pushed into
homelessness by high housing costs.
SPONSORS
ACCE
Housing Now
PICO California
Public Advocates
Unite Here Local 11
CONTACT
Erika Salazar, Legislative Aide
[email protected]
(916) 319-2025
Erika Ngo, Legislative Director
[email protected]
(916) 319-2025